CPA Australia Financial-Accounting-and-Reporting : CPA Financial Accounting and Reporting Exam

  • Exam Code: Financial-Accounting-and-Reporting
  • Exam Name: CPA Financial Accounting and Reporting Exam
  • Updated: Sep 05, 2026
  • Q & A: 100 Questions and Answers

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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:
SectionObjectives
Financial Reporting Framework- Conceptual framework for financial reporting
  • 1. Qualitative characteristics of financial information
    • 2. Recognition and measurement principles
      Assets- Asset recognition and measurement
      • 1. Inventories
        • 2. Impairment of assets
          • 3. Property, plant and equipment
            • 4. Intangible assets
              Financial Statement Analysis and Interpretation- Analysis techniques
              • 1. Ratio analysis
                • 2. Trend and comparative analysis
                  Consolidated Financial Statements- Group accounting
                  • 1. Goodwill recognition and impairment
                    • 2. Non-controlling interests
                      • 3. Business combinations
                        Revenue Recognition- Revenue from contracts with customers
                        • 1. Identification of performance obligations
                          • 2. Timing of revenue recognition
                            Liabilities and Equity- Financial instruments and obligations
                            • 1. Equity instruments
                              • 2. Borrowing costs
                                • 3. Provisions and contingencies
                                  Financial Statements- Preparation and presentation
                                  • 1. Statement of cash flows
                                    • 2. Statement of profit or loss and other comprehensive income
                                      • 3. Statement of financial position
                                        CPA Australia CPA Financial Accounting and Reporting Sample Questions:

                                        Question 1

                                        Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?

                                        A. current purchasing power
                                        B. fair value
                                        C. current value
                                        D. deprival value


                                        Question 2

                                        A rules-based approach to standard setting

                                        A. prescribes standards that attempt to cover all eventualities a business may face.
                                        B. ensures there are no conflicts within accounting standards as each issue is handled just once.
                                        C. helps a standard-setting body to prioritise matters.
                                        D. provides a broad framework for standard setting.


                                        Question 3

                                        Investors use the audited financial statements of a company to
                                        I)evaluate the company's current return on assets
                                        II)predict the company's market conditions for future years.
                                        III)predict the company's market conditions for future years.
                                        IV)make a judgement on the liquidity and solvency of the company.

                                        A. I and III only
                                        B. III and IV only
                                        C. II and III only
                                        D. I and IV only


                                        Question 4

                                        Which one of the following financial statements helps provide information about factors that might affect an entity's liquidity or solvency?

                                        A. statement of cash flows
                                        B. statement of profit or loss and other comprehensive income
                                        C. notes to the financial statements
                                        D. statement of changes in equity


                                        Question 5

                                        An example of voluntary reporting in Australia is a

                                        A. statement of cash flows.
                                        B. statement of financial position.
                                        C. sustainability report.
                                        D. statement of comprehensive income.


                                        Solutions:

                                        Question 1
                                        Answer: D
                                        Question 2
                                        Answer: A
                                        Question 3
                                        Answer: D
                                        Question 4
                                        Answer: A
                                        Question 5
                                        Answer: C

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